OLYMPIA, WA – Last fall, thousands of businesses and charities received bills that appeared to be from the state of Washington.
Many recipients obliged, sending payments totaling hundreds of thousands of dollars in response to the state’s “Corporations & Charities Division.”
While that agency exists within the secretary of state’s office, the letters were part of a fraud and money laundering scheme carried out by a former postal worker arrested this week, according to an indictment filed in U.S. District Court in Seattle.
Johnny Nguyen faces 11 counts of mail fraud and money laundering. The San Jose, California, man was arrested Tuesday in northern California.
Nguyen, 49, sent the letters with billing statements on fake Washington state government letterhead, according to the indictment. The notices said payment was required for business and nonprofit filing fees. One example tells a business it owes $230, well beyond what the state charges.
The official-looking letters directed victims to send checks payable to “Business Entities” to post office boxes he’d rented, including in Olympia. Months earlier, Nguyen formed a company in California under that name, according to the charges.
On top of 350 checks worth $82,000 from Washington, the defendant deposited another 60 from California totaling $8,600, prosecutors allege. The indictment calls for Nguyen to forfeit the more than $90,000 he is accused of receiving.
Investigators reportedly seized another 1,700 checks worth $395,000 before Nguyen could deposit them.
After receiving the money, Nguyen would make transactions trying to conceal its source, according to court documents.
After numerous complaints last year, the Washington secretary of state and attorney general’s offices warned businesses of the fraudulent letters.
“Washington businesses are a foundational aspect of our state and critical to our economy’s health,” Secretary of State Steve Hobbs said at the time. “Business owners deserve to feel protected and equipped with information to deny malicious attempts on their franchise.”
Then-Attorney General Bob Ferguson identified a couple clues indicating this was a scam last year. One of the letters listed a Sacramento address on the letterhead. A QR code on the document also went to a .org website instead of a .gov address.
Businesses can verify their filing status on the secretary of state’s Corporations and Charities Filing System.
The secretary of state also lists tips on its website to help businesses identify fraudulent solicitations. The U.S. attorney’s office in Seattle suggests calling the agency that sent the communication using a phone number on its website to verify its legitimacy.
Nguyen is scheduled to appear in court July 1.
This story first appeared on Washington State Standard.
